The new era of Toyota: solid-state batteries and the race for supply chains in Japan

Idemitsu Kosan, the Japanese oil giant, has announced plans to build a large-scale plant dedicated to the production of lithium sulfide, a key material for the solid-state batteries that Toyota plans to launch in the coming years.

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The total investment in this facility amounts to 21.3 billion yen, approximately 142 million dollars, and has received approval from the Ministry of Economy, Trade and Industry of Japan (METI).

This project underscores Japan’s commitment to establishing a local battery supply chain, reducing dependence on countries like China and South Korea.

Toyota is on the hunt for solid-state batteries

Solid-state batteries, considered the “holy grail” of battery technology for electric vehicles (EVs), promise significant improvements in range, charging speed, and energy density.

These batteries use solid electrolytes instead of liquids, which potentially increases their efficiency and safety. Idemitsu and Toyota have been collaborating since 2023 on the development of solid electrolytes and plan for Toyota to be their first customer in the production expected to start between 2027 and 2028.

The plant will be able to produce 1,000 metric tons of lithium sulfide annually, which represents a significant advance in the research and development of solid-state batteries.

Other car manufacturers, such as Mercedes-Benz, Honda, and Hyundai, are also investing in this technology, intensifying competition in the sector and accelerating the race to market more advanced energy solutions.

Despite Toyota proclaiming for years its intention to implement these batteries, recent advances suggest that it is getting closer to fulfilling its promises.

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The competition comes not only from automotive manufacturers, but also from leaders in battery production like CATL and BYD, who are also working to launch their own versions of this innovative technology.